Will India’s Gold Fever Hit New Highs?

Is it too late to buy gold now that it is up more than 20% from a year ago? Not according to Bollywood Dream Girl Hema Malini.

Noah Seelam/Agence France-Presse/Getty Images

As the price of gold has risen, buyers have become more picky about what they choose.

“It’s a very good investment,” said the actress at an exhibition of gold and jewelry in Delhi over the weekend. Ms. Malini said that the recent price gains go to show just how good an investment it can be. She sees no reason why it wouldn’t continue going up. “Gold is gold,” said Ms. Malini.

Many people who shared Ms. Malini’s views showed up at the Festival of Gold, which started over the weekend at the Ashok Hotel in Chanakyapuri.

Organized by MMTC Ltd., India’s largest importer of gold, the exhibition boasted several stalls showcasing MMTC jewelry, primarily in gold but also in silver, platinum and pearls. The jewelry costs the same as it would at an MMTC outlet but visitors had the benefit of seeing designs from various parts of India – from Goa to Hyderabad – in one place.

As the price of gold has risen, buyers have become more picky about what they choose. “We can’t buy as lavishly as before,” said Preeti Mathur, a 40-year-old housewife from Noida, Uttar Pradesh. Still, she hoped to buy something for herself and for her three daughters at the event to mark the festivals of Karva Chauth and Diwali.

Some visitors came to the festival to buy gold as an investment. Gurgaon resident Vandana Sinha, 31, and her mother planned to buy some gold coins which Ms. Sinha hopes to pass on to her children when they are older. Ms. Sinha said she had been watching gold prices closely for a while and figured that now was a good time to buy, since prices have come off slightly in the last few weeks. “If you are buying gold, you have to keep your eyes open,” said Ms. Sinha.

Visitors said they prefer to buy jewelry from MMTC because they are assured that the metals are pure. “Gold is a dicey thing,” said Ruhi Shahin, 28-years old, a resident of East Delhi. This weekend, Ms. Shahin bought a set of gold bangles at the exhibition.

The MMTC exhibition goes on all week through Dhanteras, which this year falls on Oct. 24, which is considered an auspicious time to buy gold.

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